The A - B - C rule stands for all business consolidated rule true or false?

PLEASE HELP ME ASAP.

liubo4ka [24]

Answer:Principal:150 Rate:2% Time:1 year

Explanation:

Hope this helps

5 0

3 years ago

Assume that today is December 31, 2019, and that the following information applies to Abner Airlines: After-tax operating income

melamori03 [73]

Answer:

The company's stock price today should be $71.17 per share.

Explanation:

The corporate valuation model approach can be used to estimate this by using the following steps:

Step 1: Calculation of the free cash flow

Free cash flow is the cash a firm generates after accounting for capital expenditure. This can be estimated using the following formula:

Free Cash Flow (FCF) = After-tax operating income + Depreciation expenses - Capital expenditure

For this question, we therefore have:

Free Cash Flow (FCF) = $700 + $150 - $375 = $475 million

Step 2: Calculation of Value of operations (Vo)

Vo = FCF / (WACC - FCF growth rate) = 475 / (11% - 7%) = $11,875 million

Step 3: Calculation of the Firm value

Firm value = Vo + Non-operating assets = $11,875 + $199 = $12,074 million

Step 4: Calculation of value of equity

Value of equity = Firm value - Debt = $12,074 - $3,534 = $8,540 million

Note: The correct amount of debt is $3,534 not $3.540 as mistakenly given, may be due to typographical error, in the question.

Step 5: Calculation of stock price per share today

Stock price per share = Value of equity / Number of shares outstanding = $8,540 / 120 = $71.17 per share

Therefore, the company's stock price today should be $71.17 per share.

7 0

3 years ago

Last year Electric Autos had sales of $175 million and assets at the start of the year of $300 million. If its return on start-o

nalin [4]

Answer:

Operating profit margin = 25.71%

Explanation:

Amount of return on asset = Rate of return x Asset value

Amount of return on asset = 15% x $300,000,000

Amount of return on asset = $45,000,000

Operating profit margin = Amount of return on asset / Sales

Operating profit margin = $45,000,000 / $175,000,000

Operating profit margin = 0.257143

Operating profit margin = 25.71%

5 0

4 years ago

Bailey works as a self-employed golf pro at the local country club, allowing him to spend more time with his young family. he'll

jok3333 [9.3K]

Bailey has a lifestyle business. A lifestyle business is, simply put, a business that is run by someone with the main goal of simply sustaining a certain income and nothing more. It's main function is to allow the business owner to enjoy a particular lifestyle, in this case, for Bailey to spend more time with his family.

4 0

3 years ago

N organization's hierarchy of authority refers to an organization's _____.

lara31 [8.8K]

commenting so I can get help too

3 0

4 years ago